POS equipment and systems...make the right choices
We’ll look at the key factors you should take into account when planning for a POS equipment of any shape and size, for a variety of environments -- retail, hospitality, etc.
Ok, let’s get right into it.
First off, what exactly is a POS (Point Of Sale) system? In a sense, it’s nothing more than a glorified cash register. Having said that, let me remind you that few other business equipment purchases have the kind of impact POS systems can have on the way you run your business and on your bottom-line.
Obviously, it’s critical that you make the right choices at the start.
A basic POS system will have a cash drawer, a computer, input devices like scanner or keyboard and a receipt printer. Fundamentally, a good POS system does two things -- it speeds up your operations at checkout (or other billing point in your business) and it provides detailed reports about your operations.
This second point -- the detailed reports, the MIS -- can be a real bottom-line booster. Provided you get the MIS best suited for your business AND make use of it in a timely manner.
Next, do you really need sophisticated POS equipment and systems?
If you’re a business with a turnover of less than say, a quarter-million dollars, perhaps all you need is a good electronic cash register. That’ll be far cheaper and will probably meet your needs very well.
If your business has revenues of more than a million dollars or so a year, you likely do need a good POS system.
What benefits can you look forward to if you use a POS system?
* A POS system can help raise your operating profits. How? Sales reports and other information will allow you to focus better manage your floor space and focus on higher margin items. In a restaurant setting, it may help you identify underperforming items you can promote differently.
Many store owners find that this data throws up many surprises, both pleasant and not-so-great. And that’s just the beginning.
* Inventory management becomes far easier compared to your pre-POS system days. You’ll have detailed reports, in real time if needed. You can spot trends better, be altered to items that are running low, forecast inventory levels based on historical data and more.
* Gain accuracy. Your staff doesn’t need to guess product prices again or fumble around to answer customer inquiries about the availability of specific items.
* Cut down on paperwork and manpower needs. Routine items like maintaining inventory, etc take up a lot of time and paperwork that can get drastically reduced with a good POS system. As a bonus, things get done faster.
* Reduce theft involving employees. Just the fact that inventory is accurately tracked is often enough to reduce shrinkage due to insiders. Your savings can add up significantly over time.
* Boost transaction efficiency. This should be obvious. Checkouts are much faster, ordering processes in restaurants are far smoother with POS equipment. You provide a better customer experience while saving time and money.
* Build targeted customer lists. You can track buyer behavior by customer. That’ll allow you to offer targeted incentives and promotions to specific groups of customers. Result -- more customer satisfaction and a better bottom-line for you.
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